- January 4, 2022
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Main Benefits of Company Registration in Bulgaria
In this article we would like to review several of the main advantages that one may face when considering Company Registration in Bulgaria.
Bulgaria is one of the business locations that has noticeable progress in many industries. For example, information technology, support, electronics, automotive part manufacturing, electrical engineering, mechanical engineering, tourism and chemical industry mark improvement .
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The economy
Bulgarian economic circumstances have been increasing with a stable rate from the past several years. This fact reveals to business owners and investors reliability and certainty for their future plans and efforts.
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Taxation
Once you decide to do company registration in Bulgaria,you should act in accordance with the local laws and obligations for doing business. One of the most important things includes the taxes of companies. Bulgaria has one of the lowest firm income tax rates in Europe. There is a flat corporate tax of 10% from the net profits and income tax.
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The workforce
Bulgaria has become a very interesting choice for setting up a business because of the benefits it offers, such as a more competitive talent pool compared to the other European countries and lower taxes rates as well.
Here are the main reasons why foreign companies have to consider a company formation in Bulgaria:
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Low taxes
There is low average monthly labour compensation linked to those in France, Germany or other countries in the European Union. The country has very advantageous business taxes. Bulgaria has one оf the lowest corporate income taxes in Europe. It has a low personal income tax as well.
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Highly trained and skilled talents
Bulgaria not only has low labour costs but also very qualified specialists who speak and use several languages.
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The geographical position
The country could be a tactical center for doing business, especially in Europe. It is due to the location with Romania, Serbia, Macedonia also Greece and Turkey as neighbours, and access to the Black Sea.
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Business chances
Bulgarian population is around 7 million people. The country has mostly urbanized citizens and has its business and cultural happenings concentrated on Sofia. Sofia is the capital which is also the biggest city of the country. Additionally, Bulgaria is a member of the European Union, NATO and Council of Europe.
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Employees salaries and social insurances
Bulgaria has a lower minimum wage, compared to other EU countries. Moreover, the country has low social insurance costs and the labour force is well qualified and trained too.
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There are no running costs for the firm
If the firm was registered but it does not have any action, it is not subject to obligations. Even so, the legal entity is required to deliver a return of annual tax. It is a very easy operation that can be realized by using accounting solutions or directly by the managing director.
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The power of attorney
It is not obligatory for the business owner to be present in Bulgaria when registering the firm. The potential of utilizing a power of attorney to register a company is one of the remarkable preferences in company formation in Bulgaria.
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Agreements for prevention of double taxation with countries
Moreover, the country has signed agreements for prevention of double taxation with countries such as the United Kingdom, Turkey or Russia. That means that a firm that has managing offices both in Bulgaria and in another place from the agreement will pay taxes only in the country where that income is provided from.
Accordingly, by a company formation in Bulgaria business owners and investors can take advantage of these benefits and get ahead of competitors.
If you do not speak Bulgaria language or you are not aware of the local laws a company formation may appear uneasy job. However, there are companies such as Horizons Bulgaria that offer business services and have background in company registration in Bulgaria remotely without the clients even visiting the country.
If you plan to open a company in Bulgaria, Horizons Bulgaria will look after everything. We can offer various incorporation services fitting your business needs. Once the company is set up, we can also provide ongoing administration to ensure you follow strictly all bureaucratic obligations.
We can support you at every pace of the way. Let us help you in the process of company registration in Bulgaria.